AUD/USD Falls to 0.6560 as US Dollar Strengthens.
AUD/USD drops toward 0.6560 amid strengthening US Dollar.
FUNDAMENTAL OVERVIEW:
The AUD/USD pair trades around 0.6560, down 0.45% during Friday’s European session, as the Australian Dollar weakens broadly, excluding against the Japanese Yen. This decline comes despite RBA Governor Philip Lowe stressing the need to bring inflation sustainably back to the 2% target before easing policy.
In a Thursday speech to the Anika Foundation, Bullock signalled caution on cutting rates prematurely, as reported by The Guardian. Market participants now await Australia’s Q2 Consumer Price Index (CPI) report, due on Wednesday, for further direction, after Q1 inflation stood at 2.4%.
Globally, attention shifts to next week’s US-China trade talks in Stockholm, which could significantly impact the trade-sensitive Aussie, given Australia’s close economic ties with China.
Meanwhile, a stronger US Dollar continues to pressure AUD/USD. The US Dollar Index (DXY) surged near 97.70 as optimism grows over a possible US-EU trade deal before the August 1 tariff deadline.
Looking ahead, the Federal Reserve’s upcoming monetary policy decision on Wednesday will be a key catalyst for USD movement.
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AUD/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
AUD/USD is trading within an up channel.
AUD/USD is moving above 50&100 Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Neutral trend.
Immediate Resistance level: 0.6582
Immediate support level: 0.6532
HOW TO TRADE AUD/USD
On the higher time frame, AUD/USD broke out to the upside following a period of consolidation, triggering a brief rally. However, after surpassing its immediate resistance, the pair failed to sustain the move and quickly reversed. Currently, it is pulling back toward a key support zone. If this level holds, a fresh upward move may resume.
